The Company is pleased to report Q1 non-IFRS revenues of $6.8 million (IFRS - $12.2 million), a 106% increase over Q1 2015 non-IFRS revenue of $3.3 million (IFRS $5.9 million). While this represents significant year over year growth, the Company expects increasing, sequential growth for the remainder of 2016 and reaffirms its guidance to achieve non-IFRS revenue between $55 million and $60 million (representing an IFRS revenue range of $78 million to $83 million) in fiscal 2016.

UrtheCast has a strong outlook for its core Earth Observation (EO) business as the Company continues to emerge as a legitimate new entrant in the global EO market, demonstrated by over $200 million of outstanding bids as it enters its strongest revenue generating quarters. UrtheCast's Engineering Services business, aided by the recent amendment the $65 million contract from its largest customer, is also entering a period of accelerating growth.

The Company's non-IFRS adjusted EBITDA, excluding share-based payments, was a loss of $6.0 million in the first quarter compared to a profit of $0.9 million in 2015. (The profit in Q1 2015 was the result of business interruption insurance proceeds of $2.3 million). At March 31, 2016, the Company had total cash balances of $39.0 million and working capital of $33.4 million. The Company expects non-IFRS EBITDA to improve throughout fiscal 2016, reaching positive non-IFRS EBITDA in Q3 2016.

"We have completed many milestones in Q1 that will allow us to achieve our goals in 2016," explained Wade Larson, CEO and co-founder. "We have integrated our sales efforts with Deimos Imaging to offer our unique, integrated suite of four EO sensors globally, leading to quotes that have driven our total over $200 million, amended a contract with our largest customer to accelerate Engineering Services revenues, completed the flow of data from Deimos 1 to our UrthePlatform, developed a strong and growing sales funnel for our planned OptiSARTM constellation, and reached significant milestones in our Synthetic Aperture Radar (SAR) – all while maintaining a strong cash position and experiencing rapidly growing revenue."

Additional Recent Highlights

Integration of Deimos Imaging and Global Sales Efforts

The Company has now fully integrated Deimos Imaging's operations and sales efforts to offer a unique, integrated suite of four EO sensors globally, and has developed a strong and growing sales funnel for the Company's EO imagery and planned OptiSAR™ Constellation.

UrthePlatform Update

UrtheCast announced that, for the first time, newly-collected imagery from the Deimos-1 satellite is flowing to the UrthePlatform shortly after acquisition. UrtheCast anticipates that it will provide this broad-area-coverage Deimos-1 data cloud-free for the entire contiguous United States, each and every month, throughout the 2016 agricultural growing season, all available for extraction, on demand, in GeoTIFF format at affordable price points.

OptiSAR Progress

UrtheCast recently announced it established a Cooperative Research and Development Agreement (CRADA) with the National Geospatial-Intelligence Agency (NGA) to focus research and development efforts on the operational effectiveness of the OptiSAR™ constellation, including data fusion, improving metric accuracy, and optimizing collection & dissemination strategies. This CRADA will allow UrtheCast to work closely with an experienced user and make early changes to its systems architecture, if deemed appropriate, to support UrtheCast's government and commercial customer base.

UrtheCast signed a Contribution Agreement under the Space Technologies Development Program, implemented by the Canadian Space Agency, for $2.0 million of funding to aid UrtheCast in the development of the OptiSAR™ constellation.

UrtheCast reached an agreement with its largest customer on the previously announced US$65 million contract to re-allocate all of the funds previously earmarked for future data purchases to engineering services. With the amendment, the entire US$65 million contract is now for engineering services. This amendment will increase the monthly revenues of the Company beginning in mid-2016 to early-2018.

UrtheCast announced it successfully completed prototyping and testing the hardware of the principal core enabling elements of the Company's SAR technology. It has been developed through numerous innovations and has resulted in the filing of multiple patent applications. The tests have proven that the core SAR technology works, demonstrating that the technical and programmatic risks of the OptiSAR Constellation development program have been reduced.

UrtheCast continues to fill the sales funnel for the planned OptiSAR™ constellation, with multiple MOUs signed and discussions at various stages of maturity. UrtheCast will provide further updates as these discussions progress.

SELECTED FINANCIAL INFORMATION

The following table provides selected financial information of the Company, which was derived from, and should be read in conjunction with, the audited consolidated financial statements for the year ended December 31, 2015.